Google Loses Patent Infringement Suit, Ordered to Pay $5 Million

In a decision that could have consequences to many of Google's businesses, a jury has found the search giant responsible for infringing on the patents of a small Texas company, Bedrock Computer Technologies.

In a decision that could have consequences to many of Google's businesses, a jury has found the search giant responsible for infringing on the patents of a small Texas company, Bedrock Computer Technologies. Google has been ordered to pay penalties of $5 million for its use of a key piece of software code, and the decision could affect other companies as well.

Google was one of many defendants named in Bedrock's suit, filed in 2009, which also targets Yahoo, MySpace, Amazon, PayPal, Match.com, AOL, and others. The code in question has to do with the Linux kernel, a fundamental part of the software that's at the core of Google's servers and the Android operating system. The jury found that Bedrock's patent was valid and that Google was infringing, which could led to many other defendants either settling or paying Bedrock licensing fees.

"The question of Google possibly having to pay $5 million… is not really the issue," says self-described intellectual property activist Florian Mueller in a blog post. "Bedrock is now in a pretty strong position to collect royalties from other Linux users, especially those utilizing Linux for large server operations."

Mueller goes on to suggest there may be consequences for thousands of Android apps that also rely on the Linux kernel. Google may also have to modify the Android OS itself to avoid infringing on Bedrock's patent. Google is currently engaged in 41 other Android-related patent lawsuits, Mueller says, and this result doesn't bode well for Google's chances in those.

For now, Google will likely appeal the case, and Linux distributor Red Hat has taken Google's side, asking the courts for a declaratory judgment that declares the patent invalid. But the ruling strengthens Bedrock's position, and Mueller suspects it will be "quite successful" at working out licensing deals with the other defendants before the final judgment comes to pass.